MARKETING AND STRATEGIC RESOURCE MANAGEMENT
MARKETING AND STRATEGIC RESOURCE MANAGEMENT
Name Your name
Task 1 Select an organisation with which you are familiar and assume that you are the marketing executive of the organisation.
Your organisation is considering launching a new product/service, and the marketing manager has asked you to deliver a presentation to the board. Your presentation must show how the new product or service aligns with the current business strategy.
Word count 1500
Date 6th June 2016
Marketing and Strategic Resource ManagementCONTENTS
S. No.Description Page No
Strategic Management3
Scope of Strategic Management3
Domestic Business3
International Business6
Global Business7
Globalisation of Business7
1.3Influence of International Business Environment8
1.3.1Direct Influence8
Wider Influence9
Techniques for Analysing Business Environment10
2.1Overview of Business Environment10
2.1.1Internal and External Environment10
2.1.2Competitive Environment11
2.2Composition of External Environment11
2.2.1Economic Environment12
2.2.2Socio-Cultural Environment12
2.2.3Political and Legal Environment13
2.2.4Technological Environment13
2.3Micro and Macro Environmental Factors13
2.4International Business Environment15
2.5Techniques for Environmental Analysis16
2.5.1Competitors Analysis16
2.5.2Customers Analysis16
2.5.3Porters Five Forces Method for Competitive Analysis17
2.5.4Environment Audit (PESTLE)17
2.5.5Porters Diamond The Competitiveness of Nations18
2.6 Business Strategies for Managing the Environment18
1. Strategic Management
Strategic Management is the process and organizational arrangements which allow a council to plan for success over the long-term. By their nature, strategic plans tend to be complex in nature, ie multi-perspective, multi-service and multi-interest. They may require decisions to be made in the face of uncertainty or ambiguity and will certainly involve change. Business planning the processes which allow a councils strategic vision, objectives and priorities to be translated into operational action plans. A corporate business plan will identify what needs to happen in all service areas to achieve success, what resources will be required for delivery, the outputs and outcomes that are anticipated and any other contributory factors (eg actions by partner organizations, risks, resource assumptions etc). Underpinning this, most council will usually have individual service plans for each defined area of council business which provide greater detail and specify a range of performance targets for those delivering services or improvements.
1.1 The Scope of Strategic Management
Management process - Management process as relate to how strategies are created and changed.
Management decisions. The decisions must relate clearly to a solution of perceived problems (how to avoid a threat; how to capitalize on an opportunity).
Time scales. The strategic time horizon is long. However, it for company in real trouble can be very short.
Structure of the organization. An organization is managed by people within a structure. The decisions which result from the way that managers work together within the structure can result in strategic change.
Activities of the organization. This is a potentially limitless area of study and we normally shall centre upon all activities which affect the organization.
1.1.2 The Nature and Value of Strategic Management
All organizations engage in the strategic management process either formally or informally. Strategic management is equally applicable to public, private, not-for-profit, and religious organizations. An attempt is made in this thesis to show the applicability of strategic management to all types of organizations, but the emphasis is on private-enterprise organizations.
Organizations usually employ one of the three general decision-making processes.
References
Sample reference
Sample reference
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TASK 2
CASE STUDY
Name Clyde Joshua Vales
Task 2 You must write a short case study to explain illustrate what a PESTLE analysis and a SWOT analysis are. Your case study should start by explaining the concept of macro environment and micro environment before providing an example of a PESTLE analysis for an organisation of your choice within the tourism and hospitality sector. After carrying out the PESTLE analysis, you should then provide a SWOT analysis for that organisationWord count 1928
Date IntroductionP&O Cruises is the British cruise ship company based at Carnival House in England, functioned by Carnival UK and owned by Carnival Corporation & Plc. It was a subsidiary firm of the shipping corporation P&O and was established in 1977. With about 200 terminuses globally, P&O Cruises Itineraries are prudently curated to stimulate discovery and are diverse to suit experienced and newcomer guests alike. The company welcome visitors to experience holidays with the blend of choice, discovery, exceptional service and relaxation created towards British tastes. The main purpose of this case study is to analyze the macro and micro environment with the help of SWOT and PESTLE analysis. Macro environment and Micro environment
Each business enterprise is a fragment of the corporate environment, within which it functions. No firm can operate in separation as there are various aspects that distantly or closely edge the corporate which is recognized as the business setting. It is widely categorized into 2 types, i.e. macro environment and micro setting. Business operations are directly impacted by microenvironmental factors whereas macro-environment leaves an indirect impact on all businesses at a large scale.
Micro environment is considered as the setting that is in straight contact with a business firm and can impact the routine operations of the business. They can impact the performance and daily corporate operations, but for the short term only. Its components include competitors, suppliers, customers, advertising intermediaries, and the company itself.
The macro environment is regarded as the main uncontrollable and external factor that impacts the decision-making of the corporation. The company does not function unaccompanied in its business setting but functions in a greater context. It consists of forces that offer prospects, but at a similar time, also impose threats to the corporation. PESTLE analysis
PESTLE stands for the analysis of external aspects that are advantageous while performing research before beginning the new project or to assist in conducting market research. The learning of the macro environment is called Pestle study. The factors of pestle analysis that occur in the environment are political, economic, socio-cultural, legal, environmental, and technological. These variables reflect both non-economic and fiscal factors such as government policies, social apprehensions, population size, family construction, GDP(Gross Domestic Product), ethnic mix, political steadiness, tax rate, obligations, etc. SWOT analysis
SWOT analysis aids in interpreting the findings of the PESTLE analysis to recognize the strengths, weaknesses, opportunities, and threats of business. It aids in understanding SWOT factors by categorizing the weaknesses and strengths as an internal assessment of the business, so analyzing within the business at controllable factors. The threats and opportunities are thus, categorized as external assessments of the business, so looking at external forces and impacts that are beyond the control of the business. Pestle analysis of P&O cruise company
The company offer the voyage experience to tourists via cruise ships. It belongs to the tourism sector and has been impacted because of the COVID-19 outbreak. The services of this industry stopped and restrictions were imposed to prevent the virus spread.
Political aspects Political aspects are the first element of the PESTLE outline that apply a strong influence on corporate and undertake a substantial role in recognizing the long-term sustainability of the business. The political aspect that impacted the company during COVID-19 was that the government placed restrictions on operating this industry. The reason behind this is to prevent the movement and spread of the virus.
Economic factors Economic factors consist of multi-faceted variables that directly impact the ability of a business to accomplish its economic objectives. P&O Cruise Company should gain a thorough understanding of such aspects to forecast the long-term and short-term corporate progresses in the tourism sector. Economic aspects like a decrease in GDP, unemployment, inflation, and several others have serious impacts on P&O cruise company. With the imposed restrictions, people have become unemployed, and GDP declined as the cruise industry being part of the tourism sector contributes higher to the economic growth. Inflation has arrived and global crises have been declared. After COVID-19, this sector is trying hard enough to arrive on track to function successfully soon.
Social factors Social factors present the main demographic features, norms, social morals, and rituals of the society wherein the company operates. The cruise has a high demand among consumers and most of them are repeats but the pandemic has impacted it adversely.
Technological aspects In todays corporate when the pace of technological advancements is hastening, and firms are widely investing in emergent know-hows to remain forward of the competition, it is substantial for P& O Cruise company to research and project the future and existing technical trends to assure long term sustenance of the business. When it arrives to the technological factors that have enhanced in the last few years and specifically during the outbreak, more and more innovations have taken place. The supply chain also can be made more competent by making dealing with the suppliers highly transparent using technology. Internet and mobile penetration and applications for mobile payments have to speed up the growth of the company as well.
Environmental factors Environmental study has acquired substantial significance in the modern business environment because of the raised observance of participants towards environment protection and sustainability. P&O Cruise corporation is advised to gain a thorough understanding of the environmental guidelines to evade any reputational harm and lawsuits in the marketplace. There are some environmental regulations and standards that exist at both national and local levels in the line of the cruise business. These policies have been made more strict that have a direct influence on the choice of plant location, the policy used in pricing and the progress of the product. During the pandemic time, P&O cruises company has made efforts to shift the focus to higher renewable energy and to reduce the carbon footprint as well.
Legal factors Dissimilar to political aspects that provide a broader picture, legal aspects offer highly detailed and particular information in relation to distinct laws and guidelines, majorly counting health and safety regulations, employment laws, consumer protection regulations and intellectual property laws. P&O cruise company may face exclusive lawsuits in case it fails to duly conform with the legislation of the host nations. There are safety and health laws that are to be strictly abided by each corporation in the cruise business. It can vary from nation to nation but adherence or non-adherence to such laws can have a significant influence on a company's survival as a whole. The corporations should also evaluate the protection of their intellectual property rights with reference to the legal mechanism of their respective nation. It is relatively simple for corporations to begin in the cruise line company because of the presence of the Competition Act 2002. SWOT analysis of P&O Cruise Company
Strengths
Stronger brand range Over the years, P&O Cruises has established a stronger brand range. Such a brand portfolio is tremendously helpful as the company desires to extend into novel product categories.
The mechanization of actions brought steadiness in the quality of P&O Cruises products and has allowed the corporation to scale down and up as per the market demand.
Effective performance in new marketplaces P&O Cruises has built proficiency at making entry into new marketplaces and making a success out of them. The development has aided the corporation in constructing a new stream of revenue and expanding the fiscal cycle danger in the market where it carries out operations.
Reliable suppliers It intends to have a robust base of consistent raw material suppliers, thereby permitting the corporation to mitigate supply chain disruptions.
Stronger free cash flows P&O Cruises have stronger free cash movements that offer possessions in the hand of the corporation to extend into new plans.
A strong network of distribution The company has constructed a reliable grid of distribution that can grasp the major proportion of its probable market.
Weaknesses
Outlay in R&D (Research and Development) activities is below the fastest-growing companies in the market. Even though P&O Cruises is investing over and above the trade normal on R&D, it has not become capable to strive with the principal players in the market in relation to the invention. Right now, the investment in capital technology is not at par as compared with the companys vision.
P&O Cruises is not effective at incorporating firms having distinct work cultures. As mentioned above, even when P&O Cruises is efficient at integrating smaller corporations it has its part of failures to merge companies that have distinct work cultures.
Require more outlay in new technologies - Provided the rise of development and distinct
characteristics, the corporation is required to undertake more investment in expertise to
incorporate the procedures in the business processes. Right now, the investment in capital
technology is not at par as compared with the companys vision..
Opportunities
The development of a new market will direct to dilution of its competitive edge and allow P&O Cruises to raise its competitiveness in comparison to its competitors.
Economic upright and rise in buyer expenditure after periods of pandemic and slow development rate in the business is the prospect for P&O Cruises to apprehend new clients and raise its market share.
The declining cost of conveyance due to dropping shipping charges can also bring down the cost of goods of P&O cruises, thereby offering the prospect to the corporation either to increase its profits or pass on the aids to the consumers to acquire market share.
New consumers from marketing activities on online platforms Over the last few years, the corporation has made an investment in online channels. This outlay has opened new channels of sales for P&O cruises company. In the next coming years, the corporation can influence this prospect by knowing its consumers well and helping their requirements by means of big data analytics.
Threats
Altering buying patterns of customers from online channels could be a risk to the prevailing physical substructure driving the model of the supply chain.
The demand for extremely money-making products is cyclical in nature and any unlikely event in peak season might influence the viability of the corporation in the short to middle term.
Stiff competition Steady profitability has raised the amount of participants in the business over the last 2 terms which has placed descending compression on not just profits but also on global sales revenue.
Shortage of a proficient workforce in a certain global marketplace presents the risk of consistent growth of profitability for P&O Cruises in such markets.
Conclusion
It can be concluded that P&O Cruises is the cruise line in Britain that welcome guests to experience holidays with exceptional services. The company operations are affected by both macro and micro-environment factors. The micro environment can be analyzed via SWOT analysis and macro-environment factors can be studied through PESTLE analysis. The political factors impact the environment that further recognizes the customer confidence in business. Political instability in tourist destinations acts as a big challenge that corporation has to overcome. P&O Cruises company is still making use of old technology. It acts as a great weakness for the well-known and great cruise industry as it has prevented the corporation from working at the optimal level because of the inefficiency of the present technological progressions. The major opportunity for P&O Cruises is that it can integrate with another firm that must support the corporation in diverse markets in the given industry. It has been analyzed that there is intense competition in the tourism industry.
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